All eyes will be on the Federal Reserve this week as the central bank’s policy committee meets to consider further rate hikes. A few major companies will report earnings this week, including
on Monday and
on Wednesday. On Thursday,
the entire report.
The main event of the week will be the two-day meeting of the Federal Open Market Committee, which concludes on Wednesday. Futures pricing suggests the highest odds for a third straight rate hike of 0.75 percentage points.
The Bank of Japan also announces a monetary policy decision on Thursday. No change in interest rates is expected there.
Economic data released this week will present several indicators of the health of the US housing market. The National Association of Home Builders releases its September Housing Market Index on Monday, the Census Bureau will report August housing starts on Tuesday and the National Association of Realtors will report August existing home sales on Wednesday.
Other data will include the Conference Board’s Leading Economic Index for August on Thursday and S&P Global’s Manufacturing and Responsible Procurement Services Index for September on Friday.
AutoZone reports fourth quarter fiscal 2022 results.
The National Union of Home Builders publishes its Housing Market Index for September. Economists forecast a reading of 48.5, about even with August’s data. The index has declined every month this year, and in August it broke above the key breakeven measure of 50 for the first time since May 2020.
The Census Bureau reports new home construction statistics for August. Expectations are for a seasonally adjusted annual rate of 1.45 million home starts, matching July.
The National Association of Realtors reports existing home sales for August. The consensus estimate is for a seasonally adjusted annual rate of 4.7 million existing homes sold, down about 100,000 from July.
General Mills and Lennar release earnings.
hosts investment days.
The Federal Open Market The Commission announces its decision on monetary policy. Just two weeks ago, Wall Street was debating whether the FOMC would raise the federal funds rate by 50 or 75 basis points. After another strong jobs report and a hotter-than-expected print for August’s consumer price index, a three-quarters of a percentage point rate hike looks almost certain. That would bring the Fed-funds rate to 3.0%-3.25%. Traders are even pricing in a 25% chance that the central bank will raise its key short-term rate by a full percentage point, which would be the biggest move in nearly four decades.
Accenture, Costco Wholesale, Darden Restaurants, FactSet Research Systems and
holds a conference call to discuss quarterly results.
keep investment days.
Bank of Japan announces its monetary policy decision. The central bank is expected to maintain its pro-low interest rate policy and keep its target rate unchanged at negative 0.1%, as it has been since early 2016.
Contrary to the hawkish US Federal Reserve, it has sunk the yen to its lowest level against the US dollar since 1998.
The Council of the Conference publishes the Leading Economic Indicator for August. The consensus request is for a 0.1% month-on-month increase, after a 0.4% drop in July. The index has fallen for five straight months, indicating that the risk of a recession is rising in the near term.
S&P Global Publications Both the Manufacturing and Services Purchasing Managers’ indices for September. Economists predict a reading of 51 for Manufacturing
and 45.3 for the Services PMI. This compares with 51.5 and 43.7, respectively, in August.
Write to Nicholas Jasinski at firstname.lastname@example.org